v3.25.2
Investment Valuation and Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Investment Valuation and Fair Value Measurements [Abstract]  
Investment Valuation and Fair Value Measurements
3. Investment Valuation and Fair Value Measureme
nts
Fair Value Inputs and Methodologies
The Fund’s determination of fair value is based on all available factors and the best information available in the circumstances. Fair value determinations incorporate assumptions that the Fund believes market participants would use in valuing the investments and involves a significant degree of judgement.
The General Partner may fair value investments using the market approach, income approach or transaction price.
For investments in equity issued by privately held companies (“Portfolio Companies”), the standard inputs generally considered by the General Partner include one or a combination of, but not limited to, the following inputs:
 
 
•
 
recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers
 
 
•
 
recapitalizations and other transactions across the capital structure
 
 
•
 
market multiples of comparable issuers
 
 
•
 
future cash flows discounted to present value and adjusted as appropriate for liquidity, credit, and/or market risks
 
 
•
 
quoted prices for similar investments or assets in active markets
 
 
•
 
other risk factors
 
 
•
 
audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Portfolio Company
 
 
•
 
changes in valuation of relevant indices, relevant market news and other public sources
 
 
•
 
known secondary market transactions in the Portfolio Company’s interests.
The indications of value derived based upon the inputs and valuation methodologies used are evaluated and weighted, as appropriate, considering the reasonableness of the range of value indicated by the methods. The fair value of an investment is the point within the range that the General Partner believes is the most representative of fair value. However, because of the inherent uncertainty of valuations, the estimated fair value may differ significantly from the values that would have been used had a ready market for the investment existed, and the differences could be material.
 
 
Fair Value Hierarchy
Various inputs are used in determining the fair value of financial instruments at the measurement date. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). ASC Topic 820, Fair Value Measurement (“ASC 820”), establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily observable inputs or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment in measuring fair value.
These inputs to valuation techniques are categorized into the fair value hierarchy as follows:
 
 
•
 
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities as of the reporting date;
 
 
•
 
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly as of the reporting date, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, and inputs other than quoted prices that are observable for the asset or liabilities; and
 
 
•
 
Level 3: Inputs that are unobservable and significant to the entire fair value measurement for the asset or liability as of the reporting date and include situations where there is little, if any, market activity for the investment and the General Partner’s assumptions used in determining the fair value of the asset or liability.
The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The General Partner’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in that asset or liability.
Fair Value Measurements
The following table summarizes the Fund’s investments categorized in the fair value hierarchy as of June 30, 2025. The Fund held no investments as of December 31, 2024.
 
Investments
   
Level 1
     
Level 2
     
Level 3
     
Total
  
Portfolio Companies
    $ —       $ —       $  388,044,057      $  388,044,057  
Money Market Fund
      176,807,547        —         —         176,807,547  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
    $ 176,807,547      $ —       $ 388,044,057      $ 564,851,604  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table summarizes the valuation techniques and significant inputs used to determine the valuation of investments categorized
in
Level 3 of the fair value hierarchy as of June 30, 2025.

 
Investments
   
Fair Value
     
Valuation Techniques
   
Unobservable Inputs
   
Ranges
     
Weighted Average
   
Input to Valuation
from an Increase
in Input
(a)
Portfolio Companies
   
$349,944,057
 
  
Discounted Cash Flow Method
  
Revenue Growth Rate
  
 
6.4% -74.1%
 
  
 14.6%
 
 Increase
  
  
  
EBITDA Margin
  
 
2.5% -50.8%
 
  
 37.3%
 
 Increase
  
  
  
Weighted Average Cost of Capital
  
 
15.2% -28.4%
 
  
 21.1%
 
 Decrease
  
  
  
Terminal Revenue Multiple
  
 
7.5x - 10.0x
 
  
8.13x
 
 Increase
  
  
  
Terminal EBITDA Multiple
  
 
13.5x - 23.0x
 
  
18.9x
 
 Increase
 
 
  
  
Market Approach
  
Revenue Multiple
  
 
5.0x - 16.0x
 
  
8.7x
 
 Increase
  
  
  
EBITDA Multiple
  
 
20.0x - 32.0x
 
  
25.2x
 
 Increase
 
 
  
 
38,100,000
 
  
 Transaction Price
  
N/A
  
  
 
 
 
(a)
 
Represents the directional change in the fair value of the Level 3 investment(s) that would have resulted from an increase in the corresponding input at period end. A decrease in the unobservable input would have had the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.
 
 
The following table provides a reconciliation of the Fund’s Level 3 investments for which significant unobservable inputs were used in determining fair value for the six months ended June 30, 2025:
 
    
Investments in

Portfolio Companies

  
Balance, beginning of period
    $ —   
Purchases
      340,853,159  
Sales
      —   
Net realized gain
      —   
Net change in unrealized appreciation (depreciation)
(a)
      47,190,898  
 
 
 
 
 
Balance, end of period
    $ 388,044,057  
 
 
 
 
 
 
 
 
 
 
Net change in unrealized appreciation (depreciation) on investments still held at reporting date
      47,190,898  
 
(a)
Included in the related
N
et change in unrealized appreciation (depreciation) in the Consolidated Statements of Operations.